July 17, 2013 Office of the Governor ATTN: Financial Services 1100 San Jacinto Austin, Texas 78701 To Whom It May Concern: Space Exploration Technologies Corp. (SpaceX) respectfully submits an application for the Texas Enterprise Fund. The enclosed binder contains: • • • • • • • • • • Completed application, including the Certification of Application signed by Company (pg. 3); Articles oflncorporation Verification of"Active" status with the Texas Comptroller of Public Accounts for SpaceX; Permit Fee Estimates (pg. 8) TEF Amount and Other State Assistance Request (pg. 9) County Depreciation Schedule Average Weekly Wage Economic Impact Analysis All audited financial statements cunently available: o Financial statements for 2012 are currently being audited and can be provided within 60 days. In the meantime, can provide unaudited 2012 financial statements if necessary and upon request. o Due to the complexity of our accounting and overall maturity of the company, in 201 I SpaceX moved from a small regional CPA firm to a ''Big Four" public accounting firm, PricewaterhouseCoopers (PwC). This change in auditors resulted in restatement of prior year financials; therefore, we do not have any audited financials prior to 201 l. We do have, however, and ending balance sheet for FY 2010 that is included in the attached PWC financial statements. o Our Chief Financial Officer is available to discuss the circumstances above and our financial statements if you have any questions. The application fee is enclosed in the envelope located in the front pocket of this binder. Please note that the Certification of Application signed by the Community will be provided under separate cover by the Brownsville Economic Development Council as a replacement to pg. 2 of the application. Thank you for your consideration of this application. Please contact me or our consultant, Sarah Roberts, if you have any questions or concerns. ;9~£J~ Lauren Dreyer Director, Business Affairs and Compliance SP~CEX-- INSTRUCTIONS Submit a completedapplicationto the Office of the Governor. If application is submitted through regular mail, mail the applicationto Office of the Governor,AttentionFinancial Services,PostOfficeBox 12878,Austin,Texas78711-2878.If throughovernight delivery,sendto Officeof the Governor, AttentionFinancialServices,1100SanJacinto,Austin, Texas78701. Indude all requestedinformationfor all sectionssinceany performancedocuments or State Agreementsdevelopedwill use details representedin this application. Be accurateand thorough to avoid delaysin processing. Whereno responseis possible,it should be markedN/A. Attachmentsand additionalpagesare not required unlessspecifically requestedin the application. Any necessarysupplementalinformationwill be requestedas a follow-up document. Original signaturesmust accompanythe completedapplication. Always use the most current applicationfoundat http://q0vernor.state.tx.us/fi1es/ecoclev/tefapp.do c. CERTIFICATIONOF APPLICATION- COMMUNITY Aut horized Community Representativ e First Name "'Ja...,s""o""'n'------------ RECEIVED Last Name ,.Hl!Jn .,,., ts"----------.- ....,..,.... - ~......,.,.: •~ ----JOL 10 w,J Title President & Chief Executive Officer FINANCIALSERVICES Organization Brownsville Economic Development Council Street Address 301 Mexico Boulevard, Suite F-1 (ITEC Campus) MailingAddress 301 Mexico Boulevard,. Suite F-1 (ITEC Campus) City Brownsville StateTX -'-''->------- Zip 78521 Fax Number (956) 546-3938 PhoneNumber (9546) 541- 1183 MobileNumber i...:(9:..::::5~6)'-'3~4~6'-'-2="'0,.,.8""'"5 _ __ _____ _ Website www.BEDC.com EmailAddress jhjlts@bedc.com / gsalihas@bedc.com To the best of my knowledgeand belief, the information contained in this Texas Enterprise Fund Application is true and correct, as evidencedby my signature below. Date Signature (Community Representative) Signedform to be provided directly by Brownsville EconomicDevelopment Council. 2 INSTRUCTIONS Submita completedapplicationto the Office of the Governor. If applicationIs submittedthrough regular mail, mail the applicationto Office of the Governor,Attention FinancialServices, PostOffice Box 12878,Austin,Texas78711-2878. If through overnightdelivery, sendto Office of the Governor, AttentionFinancialServices , 1100SanJacinto, Austin,Texas78701. Includeall requestedinformationfor all sectionssinceany performancedocuments or StateAgreementsdevelopedwill use details representedin this application. Be accurateand thorough to avoid delaysIn processing . Where no responseis posslble, It shouldbe markedN/A. Attachmentsand additionalpagesare not required unlessspedficallyrequestedin the application. Any necessarysupplementalInformationwill be requestedas a follow-up document. Originalsignaturesmust aa:ompanythe completedappl.ication. Always use the mostcurrent applicationfound at JmQ:/!govemor.state.b< .us/files/ecodey/tefapp.doc. CERTIFICATIONOF APPLICATION- BUSINESS Authorized Business Representative (This is the Applicant) First Name .,. .La.,,u~r..,.en...: __________ lltle Last Name "'D'"'re,...y~e.:....r _ _ ____________ _ _ Director. Business Affairs and Compliance Organization Space ExplorationTechnologiesCoro. (Space)(} Street Address ,.,1_,.R""o""'c,,.,ke ..... t_._R"'d'------ - ---Mailing Address USPS:1 RocketRd - -- -- ------ - -------- FedEx/UPS: 8550 CaseRd State TX City McGregor - 6844 Zip76524 PhoneNumber (254} 840-5792 Fax Number (310) 363-6001 MobileNumber Webslte www.spacex.rom .com EmailAddress Lauren@spacex The following consultant is authorizedto provide and obtain information relatedto this application.However,the State of Texasreservesthe right to contactthe applicantbusinessdirectly at any time. ConsultantNameS""a=r-""ah'-'-'-'R=ob=e=rts=_____ ____ Consultant Email _ PhoneNumber ""25::..4.,_-.!.-'72=3e.... ·3=2=6=9'----------- roberts.sarah@out look.com To the best of my knowledgeand belief, the information contained In this Texas EnterpriseFund ApplicationIs true and correct, as evidencedby my signature below. I further certify that the business entity is in good standing Linder the laws of the state in which the entity was organized and that no delinquenttaxes are owed to any taxing entity Within the State of Texas. ~ Signatur~ /l /t.J~ (Primary Busine/JRep;esentatlve) Date 7 /,1/:2.o13 --'-- L...::..=--'-=- -- JONAlliAN EMHOFELLER (Notary Seal z 3 l COMM. • 1875222 c, NOTARY,UIUC•CNJ,otlNIA(I) LOSANGELES COUNTY ~ ~ Commlalon Ellpns ..,. o-n11er.,1. 2013 My commissionexpires-=-\1..-=-41 ._-i., ::...; I:...+ /_.:.... , ~~ ~ l 3 ' ---- -- APPLICATONFEE 0 Enclosednon-refundable application fee in the amount of $1,000 payable to Office of the Governor BUSINESS APPLICANTINFORMATION lA. Exact legal name of the entity applying to the Texas Enterprise Fund Space Exploration Technologies Corp. 1B. In addition to the Applicant, list all corporate subsidiaries under which jobs will be reported for this project. na Federal Tax ID number ,..01..._-...,0.,,..62 ..... 7""'6,L.7..._1 ____ _ Comptroller of Public Accounts number 1-01-0627671 -9 Corporate credit rating and source D&B:1R3 Service/ product produced SpaceXis a launch services provider that designs, manufactures, tests and Jaunches its own launch vehicles and spacecraft Will the Businessbe required to pay state sales and use tax on equipment? NAICSCode =33=6'-' 4-=14 -"------ -- -- 1:81 Yes D No D Undetermined --~ Exact location of proposed Texas site (address or intersection) Boca Chica Beach. State Highway 4, Cameron County APPLICANTBUSINESS STRUCTURE Is the Applicant registered to do businessin Texas with the Texas Secretary of State? IZIYes 0 No If "Yes/' Identify the exact name used by company to register tn Texas Space Exploration Technologies Corp. Structure of Applicant (private, public, LLP,LLC,etc.) ""pr'-'-'iv'""a~te=--c::.,oa<,.r""po::.:.r.:::.at""'io~n.,__ ____ ________ _ _ Evidence of good standing under the laws of the state in which the business was formed or organized is required. Please attach a certificate issued by the secretary of state or the state official having custody of the records pertaining to entitles formed under the laws of that state. Articles of Incorporation attached 1:81 Yes D No State of Incorporation: ..,,D=e.,,,,, la""'w""a.....,,re"----------Number of years Applicant company (listed on line 1A above) in business 11 Number of employees worldwide at Applicant company (listed on line 1A above) List any person or entity that has at least 5% ownership in the Applicant company (listed on line lA above): Percent ElonMusk Founders Fund 8% Draper Fisher Jurvetson 6% 4 Corporate Family Tree Pleaseprovide the family tree by listing the Applicant'simmediate and ultimate parent companies(If applicable),as well as all principalsubsidiariesof the applicant with operations in Texas. Useoutline structure below c1san example. UltimateParent/APPLICANT : Space Exploration Techno!ogjes Coro ► Subsidiary A: Dogleg Park. LLC Is the Applicant companyclassifiedas "Active" by the Texas Comptroller(current on franchisetax obligations)? [8JYes D No · Are all currently operating parent and subsidiaryentities classifiedas "Active" by the TexasComptroller? 0Yes [8;JNo If the answer to either question is no, pleaseexplain and/or discloseany history of tax-related forfeitures. DoglegPark, LLCactivities are limited to owning and leasing property; it has not engagedin other businesscontacts that would require qualificationin the State of Texas. Note: To searchan entity'sFranchiseTax AccountStatuspleasevisit the website of the Texas Comptrollerof PublicAccounts (CPA)at bttps://ourcpa.cpa.state.t:x .us/coa/[Qdey.htm l . To resolveany Issues regardinga company'sstatuswith the TexasCPA, pleasecontactthe CPA's Franchise Tax Divisionat (512) 463-4402. EXISTING JOBS AT ALLTEXAS LOCATIONS Pleaseidentify all existing locationsin Texas, including those of parent, subsidiary,and affiliated companies,as well as the TEFApplicationproject site (if this location has existingjobs). Note that a potential Texas EnterpriseFund agreement may include this baselineemploymentinformation. Company Unit City in Texas Number of Jobs RocketDevelopmentFacility McGregor 194 Will the new project result in job lossesat any existing Texas location? 0 Yes 12?)No If yes, has the affected community been notified? D Yes 0 5 No BRIEF PROJECT SUMMARY Providea brief overview of the project includingthe physicallocation of the site and the scope of plannedoperations (do not attach additional documentation). SpaceXproposesto develop and operate a south Texasspaceport,includinga command/controlcenter and the world's first commercialorbital launchsite, to meet its growing manifest and increasingdemand from customers. SpaceX designs, manufactures,and launchesthe world's most advancedrockets and spacecraftand has need for an additional launchsite. After evaluation of 14 candidatesites in south Texas, SpaceXidentified one highly probableTexas location at Boca Chicabeachin southeasternCameronCounty that remainsin competitionwith multiple sites under considerationin the United States and Puerto Rico. As the launch licensingauthority, the Federal Aviation Administration(FAA)is conductingan EnvironmentalImpact Statement(EIS) to evaluate the potential environmentalimpacts that may result from the proposalto issuelaunch licensesand/or experimental permits to SpaceXfor the proposedTexassite. The EIS processis expectedto conclude with publicationof the FAA'sRecordof Decisionin Fall 2013. Basedon tremendous public support of the project, as demonstrated throu~h over 1000 combinedattendeesat two public hearings,SpaceXis optimistic that the environmentalapproval will be granted and enableSpaceXto make a site selectiondecisionregardingthe proposed ·Texas location prior to the end of 2013. The site is physically located approximately17 miles from downtown Brownsvilleand 5 miles from South PadreIsland on privately-owned property. It is designedto accommodatecommerciallaunchesof the SpaceXFalcon9 and FalconHeavy vehicles. Operatingin conjunctionwith SpaceX1s existing launchsites (at CapeCanaveralAir Force Stationand VandenbergAir Force Base),this additional launch site will provideSpaceXthe ability to expand its existing, robust manifest of nearly 50 launchesfor commercial,government and internationalcustomers. The proposed command/control center will be physicallylocated approximately 2 miles from the launchsite. A TEF award, if secured, has potential to generate hundredsof jobs and enable nearly $63 million in first-phase investmentby 2017. The direct investment is planned be $85 million over 10 years. Oncefully operational,SpaceX's commerciallaunch site is projected to generatean economicimpact of more than $51 million annually. Known for executingat an unprecedented pace in the industry, SpaceXplans to conduct the first launchby December 2015 and reach the maximum launchrate (12 launchesper year) by January2018. At that rate, the site could rival the total rate of unmannedlaunchesat CapeCanaveral,Florida (10 in 2011). Each unmannedlaunch could conservatively attract 15,000to 25,000 visitors and salestax revenueto Texas. According to the EconomicDevelopmentCommission of Florida1s SpaceCoastand BrevardCountyTourist DevelopmentCouncilunmannedlaunchesalone attract an estimated40,000 tourists and businesstravelers to BrevardCounty that generatean economicimpact of approximately $1 million per unmannedlaunch (note: reported net economicimpact per mannedlaunch exceeds$4-$5 million). In addition to launch-relatedtourism impact, SpaceXprojects more than 350 annual visitors (approximately30 per month) will temporarily reside in the area and work at/near the SpaceXsite as customer representatives during the approximately30-day missionintegration processthat precedeseach launch.This wilt generate additionalsalestax activity in the local and state economy. Taxable purchasesfor the launchslte are projected to be $8.5 million annually. SpaceXoperatesa RocketDevelopmentfacility in McGregor,TX, which has created hundredsof high-paying, high-tech jobs in the region in just over 10 years of operations. Every engine and structure that flies on a SpaceXlaunchvehicle comesthrough the McGregorfacility for testing and processing. Primarilyas a result of this site, SpaceXhas developeda robust supplier base of more than 190 Texas companiesbenefitingfrom nearly $30 million in purchasesin 2012. These purchaseswere generatedat SpaceX'scur~entlaunch pace of 3-4 launchesannually, a number that, as noted, is forecastto rise exponentially. Having both a developmentand launchfacility in Texas will create additionalopportunities for new and existing Texas suppliersand increasestatewide taxable purchases. As a unique scopeof the project, the Universityof Texas at Brownsville (UTB)proposesthe creation of the transformatfonalSouthTexas SpacecraftTracking and AstrophysicalResearchinto GigahertzAstronomicalTransient Emission(STARGATE)research center at the spaceport.SpaceXwill provide to STARGATE, via a matching grant, unprecedentedand exclusiveresearchaccessto its command/controlcenter and equipment and a launchcomplex to advanceemerging technologyin spacecrafttacking and communication. STARGATE :s UTB-ownedbuilding and equipment is proposedto be located on a two-acre site contlguousto the SpaceXcommand/controlcenter, separatedby a fence, but with a pathway and gate between the UTB-ownedassetsand SpaceX-ownedassetsthat will facilitate easy ·accessand collaborationbetweenSpaceX, students, researchersand commercializationincubatortenants. 6 PROJECTCHARACTERISTICS(check all that apply) 181ConstructNew Facility cg] Expansionfrom Out of State D D D D LeaseFacility cg] Relocationfrom Out of State ExpandExisting Facility cg] Expansionwithin Texas RenovateExisting Facility D D New Business/Start-up Relocationwithin Texas Consolidation n/a $200,000 nla nla Squarefootage of manufacturing building (if applicable) Investment for pollution control equipment (if applicable) Investment for clean rooms (if applicable) Inventory at project location (if applicable) 7 PROJECTEDCAPITALINVESTMENTTotal Land must match Investment Schedule pg. 8 Working c.apital 9,100.000 Building(s) 37.790.900 Machinery& Equipment 38.207.350 Total 85,098,250 Do not includeworking capital in calculationto the left. COMMITTED SOURCES OF FUNDING BusinessParticipation $55,498,250 F1nanc 1al Institution(s) LocalParticipation $5,000.000 FederalParticipation 0 (excludingabatements) $24,600.000 Other TEF/TSTF/TCF/TETF* Total $85.098.250 Providea brief summary of committed funding in the space below (do not attach additional pages). This first-of-its kind project will be funded through SpaceXinvestmentcombinedwith local and state Incentives. Secured local participation is detailed in the community tax rate and local incentivesection of the application. ~he "Other" category contains funding that has been applied for through other state programs. Due to SpaceX's anticipateddecisiontiming of Fall 2013, applicationshave been submitted for review in parallel with the TEFapplication. While these applicationsare under review and not yet committed funds, they are included in the above due to their critical nature to the project. The prospectivefunding sourcesare the Texas SpaceportTrust Fund (TSTF)for developmentof launchsite infrastructure, Improvementsand facilities ($15,000,000), the Texas CapitalFund (TCF) infrastructuregrant program for electric, telecommunicationsand Infrastructureto the launchsite ($1,000,000), and through a proposedpartnershipwith the SpaceXcommand/controlcenter, the Universityof Texas at Brownsville(UTB) has proposedto create a transformationalresearchcenter at the spaceportand has applied for a SubchapterE matching grant and other funding sourcesto provide $5.6 million in critical fiber and 3-phaseelectric connectionto the researchcenter and command/controlcenter. Not included in the above committed sourcesof funding are 1) additional local participationof $1,000,000 which is being pursued, but is not yet committed, from other economicdevelopmententities in the region; 2) the EnterpriseZone program, for which an applicationwill be submitted later this year; and 3) County tax abatement or equivalentChapter 381 grant describedbelow. PROJECTED DATES & MILESTONES Begin Construction 01/2014 Begin Hiring New Employees 01/2014 ConstructionComplete 12/2016 Fully Operational 01/2018 PurchaseMachinery& Equipment 03/2014 Is constructionon leasedproperty? □ □ If yes, is it a capitalizedlease? Yes t8J No Yes [8J No 8 PERMITS D 181Pending D Current No Permits Required Estimated state and local fee related revenue generated by this project $30.000 List any local, state, or federal permits that will be, or have been acquired, including the correspondingfees paid, issuing aqencv and the expected date of recetot, if annlicable. Federal Aviat ion Admini stration lau nch licenses/ex perimental perm its : SpaceX,with the FederalAviation Administration (FAA} Office of CommercialSpaceTransportation (AST) as the lead agency, has initiated the EnvironmentalImpact Statement (EIS) processas the first step in obtaining launch licensesfor the Falcon9 and Falcon Heavy vehicles. If these licensesare granted (which is likely given SpaceX'shistory of past successfulapplicationsfor commercial licensesfor launches and re-entry as well as experimental permits), the FAAwill permit SpaceXto launch the Falcon9 and FalconHeavy orbital launch vehicles and a variety of smaller reusable suborbital launch vehicles from the commercial launch site in CameronCounty, Texas. The expected date for a Recordof Decisionfrom the FAAon the EIS is Fall 2013. The expect date of the first launch license is mid-2015 (approximately6 months prior to the first launch and each launch thereafter). US Army Corps of Engineers Section 404 Perm it: Application proceedingin parallel with the FAA's EIS. Permit expected Fall 2013 concurrent with EIS Recordof Decision. Texas Commission on Environmental Quality: All necessary permits from TCEQwill be pursued for the site. At this t ime, the only permit anticipated to be required for operations is a storm water permit. Receiptof this permit is anticipated prior to construction commencement. Cameron County permits: Applicationsfor building/platti ng/septic permits will be submitted to CameronCouF\tyas necessaryand such permits are expected as neededth roughout the construction and site activation activities planned for 2014-2015. In anticipation of this, SpaceXis negotiating a development agreement with CameronCounty in which the County is expected to commit to expedited and prioritized permitting/plan checks. JOB CREATION & INVESTMENT SCHEDULE (Must match Pro·ected Ca ital Investment on xw Existing JobsonSite New Jobs .7 Machinery & Tota l Tota l Investment Equipment Buildinq(s) .Lmd l2.bi $1!,282,900 $8,116.450 $25,899,350 2,000000 8.558,000 13,740,900 24 298.900 120 100,000 ~.000,000 4,700.000 9,100,000 60 180 200,000 1.450,000 1.850,000 3,500.000 180 50 230 2.700,000 2,100,000 4,800.000 ~ 230 30 260 600.000 1.600,000 2.200.000 2.Q20 260 10 270 5,450,000 2,500.000 7,950,000 2.021 270 10 280 1,900,000 2,550.000 4.450.000 2Qll 280 10 290 1.100.000 200,000 1,300.000 1.0n 290 10 300 750.000 850.000 1,600,000 0 20 20 $6,500.000 2015 20 40 60 2fil.Q 60 60 2Q1Z 120 .2lllS ~ TOTALS I 3001 I $9,100,000I I $37,790,900! I $38,207,350 ! I $85,098,250! Note: A breakdown of the types of new full-time jobs to be created by classification,title, and the salary may be requested. 9 Number of new full-time jobs to be included in State Agreement 300 $43,274 Estimatedannual medianwage of new jobs to be created Note: The median wage is determined by listing all salaries in ascendingorder and selectingthe value with equal number of salariesabove and below its value, or with an average of the two middle values if there is no middle number. PRIMARY COMPETITION FOR PROJECT (Out of State ) rox Stateor Country Incentive Shiloh/KennedySpaceCenter Florida up to $20.000,000/year CamdenCounty Georgia confidential negotiation Roosevelt Roads Puerto Rico confidential negotiation INDUSTRY CLUSTER If applicable,identify the targeted industry cluster within which this project falls. 0 AdvancedTechnologiesand Manufacturing,including four sub-clusters: Nanotechnologyand Materials;MicroelectromechanicalSystems; SemiconductorManufacturing;Automotive Manufacturing 181 0 D Aerospace,Aviation and Defense 0 PetroleumRefiningand ChemicalProducts D Energy, includingthree sub-clusters: Oil and GasProduction; PowerGenerationand Transmission;Manufactured EnergySystems 0 None apply . Biotechnologyand Life Sciences,not including medical services Information and ComputerTechnology,including three sub-clusters: CommunicationsEquipment; Computing Equipmentand Semiconductors;Information Technology TEF RE UEST & OTHER STATE ASSISTANCE Identify state programs that the project will apply for: Amount Statesource Texas EmergingTechnology Fund (University of Texas - Brownsvllle STARGATE) $ 5,600.000 Texas SpacePort Trust Fund (Cameron County SpaceportDevelopment.Corp.) $ 15,000,000 TexasCapital Fund 0..,,0.__ ___ -----c Other Taxing Entities Texas SouthmostCollege District ""0 .,..,,1-"'6=29,<;3 ...S._____ Total Combined Local Tax Rate (fnclude all applicabletaxing entities) County depreciation schedulefor personalproperty (attachment included) Will local abatements be offered? IZl Yes D _ .... 1,..,.8""2.,..32..,6,..6.__ ___ _ ~ Yes O No No Abatement Agreement Details Real Property % Business Personal ProDertv % Term Length in Years Maximum Amount {lf Annlicable) City N/A N/A N/A N/A County 100 100 · 10 Yes Other Taxing Entity TBD TBD TBD TBD Pleaseuse t he following text box for additional details regarding the local abatementslisted in the table above. Also describe any additional local incentives relating to the project. Public tax entities which could potentially approve abatement include Cameron County and the Brownsville Navigation District : SpaceXhas submitted an application to CameronCounty and the County Commissionershave aut horized tax abatement negotiations. Basedon the expectedjob creation, capital investmentand construction impact, under CameronCounty's adopted guidelines,the initial application'sscoring qualifies the project for a 10-year, 100% abatement beginning in 2015. Approvalof this level of abatement or an equivalent Chapter 381 grant anticipated by September2013. SpaceXwill also be seeking tax abatement from Brownsville Navigation District and has Identified the possibilityof applying for a Chapter313 property value limitation from Point Isabel 1SO,which could limit the valuation of the site to $20 million for a 10-year period. Additional local incentives: The Greater BrownsvilleIncentives Corporation(GBIC),the funding board for the Brownsville Economic Development Council (BEDC),approvedon September 7, 2011, an incentives program in the form of a $3 million economic developmentagreementfor capital reimbursements and job creation performanceover 10-year period in the Greater BrownsvilleBorderplex. In responseto competition, the GBICat BEDC'srecommendation, is considering, and anticipatedt o approve, increasingthe .$3 million cash deve~opmentgrant to a total of $5,000,000on July 18, 2013. In addition, t he GBIChas committed $500,000towards a University of Texas program (STARGATE) that will assist in establishingan transfotmative researchcollaboration at the spaceportsite. By establishingSTARGATE, VTB is , committing to the operation of an advanced researchcomplex and commercialization Incubator adjacent to the SpaceX launch site and command/control center. 'inally, due to the broad regional economicbenefit of this project, SpaceXwill be negotiating for an additional $1 million m local incentives(not induded in committed sourcesof funding) from other economic developmentorganizationsin the region as a match to GBICf unding. 11 AVERAGE WEEKLY WAGE AWW County where Qualified Businessis Located Cameron Attached 125) Yes Attached County Average Weekly Wage backup (usethe mostrecentfour quartersavailable) D No Four most recent quarters (May or may not all be in same calendar year): Quarter A $609 Year 2012 Quarter 4th Quarter B $577 Year 2012 Quarter 3rd Quarter C $570 Year 2012 Quarter 2nd Quarter D $569 Year 2012 Quarter 1st TOTAL $2,325 + 4 = $S81.25 (County AWW) Calculatethe average weekly wage excluding benefits in the formula below including only the new jobs represented in this application for state benefit. Pleaseuse an AverageAnnualized Wage achievable ln each year of job creation. $55,000 Avg. AnnualizedWage WithoutBenetrts 52 = $1,057.69 AWW To determine t he annual weekly wage of the county, go to the following web site and fill out the data link request. http://www. tracer2.com/cqi/dataanalysis/AreaSelection.asp?tableName= Industry Section1: SelectCOUNTY Section2: Selectthe Countyyou are researchinge.g. "ANDERSON" ClickCONTINUE Section3: Selectyear- e.g 2008 (usethe mostrecentfour quartersavailable) Section4: SelectTIme Period- selectALL ClickCONTINUE Section5: SelectIndustryCode- NAICS Section6: SelectOwnerships - selectALL Section7: SelectDivision- selectALL Click CONTINUE Section8: SelectIndustries- selectTOTAL,All INDUSTRIES Section9: Select DataSeries- selectAVGWEEKLYWAGES Order by: selectAREA VIEW DATA Does the company offer employee benefits including healthcare? 125)Yes If so, what percentage of benefits is paid by the Company? 100% of the employee'spremiumand 50% of their dependent premiums. 12 0 No BENEFIT TO THE STATE 181YesD Independent Economic Impact Analysis attached (required) Independent Economic Impact Analysis prepared by: No Mostafa Malki,Ph.D.,AaronEconomic Consulting The analysis must be conducted by a third-party entity not related to the applicant, and must include the following: A. Total capital investment and employment, with timeline for each B. Outline of Economic and Fiscal Impacts of : 1. Project constructio n phase 2. Annual operations for each of the first 10 years of operation Impacts during construction phase should include: • Total Expenditure • Gross State Product impact • Retail Sales • Total State Tax Revenue • Direct, indirect, induced and total peak employment • Direct, indirect , induced and total payroll Impacts during each year of annua l operations should Include: • Total Expenditure • Gross State Product impact • Retail Sales • Total State Tax Revenue • Direct, indirect, induced and total permanent employment • Direct, indirect , induced and total payroll C. Executive Summary of the analysis highlight ing the following data items: 1. Gross State product impact duri ng first year of full employment 2. Total payroll (including direct, indirect, and induced) during first year of full employment 3. Total jobs (i ncluding direct , indirect, and induced) during first year of full employment COMPANYFINANCIALDATA The Applicant company is asked to provide three consecutive years of financial data in the form of independent, audited financial statements containing, at a minimum, the following categories: • • • • • • • • • • Current Assets Inv entories To tal Assets Current Liabilities Tota l Liabilit ies Tota l Equity Net Income Revenue Cost of Goods Sold Current Accounts Receivable Note: Audited financial state ments are required from the Applicant company, as listed on page 4, line 1A of this application. If financial statements are provided f rom a parent entity, t he parent will be required to guarantee any economic development agreement w it h the State of Texas, should one result from this application . 13 CONFIDENTIALITYNOTICE The Office of the Governor,EconomicDevelopmentand Tourism division, as a state agency, must comply with the Texas PublicInformation Act (the" Act"). Under the Act the agency may have authority to maintain the confidentialityof the name of and other information related to a companyseekingto locate in the state until after the location negotiationsare completed. In the event that a public information request related to the companyIs submitted to the agency, the agency will (I) promptly notify the company of the request, (ii) if appropriate, take all possibleand appropriateactionswith the Attorney Generalof Texas to prevent release of the information, includingasserting exemptionsunder the Act (including the EconomicDevelopmentNegotiationsexceptronof section 552.131and the Trade Secrets/Commercial Information exceptionof section 552.110) and (iii) provide the company with full information and opportunity to participate in such process. The applicantsacknowledgethat negotiations and information related to this applicationshall be treated as confidential, and that a full faith effort will be made to prevent the disclosureof any such negotiations. The applicantsfurther agree that they will not disseminateInformation regardingany subsequentagreementexcept as directed by the Office of the Governor. Breach of confidentiality regardingthis application may be grounds for termination of negotiations. 14 Checklist and re uested attachments: TEF Application Pre-Submission Checklist Check if Completed A Certification of Aoolication sianed bv Communitv rna. 2) Yes 8 Certification of Aoolication sicmed bv Com~nv